Bank Leumi reported that it successfully completed a $ 750 million overseas bond issue

Bank Leumi has taken advantage of the positive momentum in world markets, and reported that it successfully completed a $ 750 million overseas bond issued. The move was made by issuing a deferred series, with a Tier 2 Contingent Convertible Bonds (COCO) loss mechanism, thus making Leumi the first Israeli bank to raise debt abroad.
During borrowing - which included institutional investors from the US, Europe and Asia - demand was about $ 4 billion. The interest rate on the bonds would be 3.275% - a margin of just 130 basis points.
The bonds will be listed for trading on an institutional succession platform on the Tel Aviv Stock Exchange, enabling Leumi to open another significant financing channel.
Overseas bond borrowing joins a series of national operations (+ 0.6% 2510) with international entities overseas, which include, among other things, the sale of the Max Credit Card Company to the American Warburg Pincus Fund, the introduction of US partners such as AM funds Michael Del and Endicott Capital for National Leumi, forming a collaboration with Australian-based Australian investment bank Macquire, Digital Pepper's collaborations and more.
The bonds raised by Leumi are for a period of 11 years, with the option of early maturity after six years, which includes a stock conversion mechanism in the event that the bank's business condition deteriorates.
The bond issue was led by City Bank, and underwriting was also attended by HSBC underwriters Morgan Stanley and BNP Paribas.
Leumi CEO Hanan Friedman said: "The excellent results of the offering, as well as the volume of demand that far exceeded all expectations, are the unequivocal confidence of institutional bodies around the world - who have expertise - in Leumi's strength and its leading competitive position in the market.
"Leumi was the first bank to issue Coco bonds in Israel about five years ago. Now Leumi is also the first to issue Coco bonds to foreign investors outside of Israel, opening up an opportunity for all financial entities in Israel, ”Friedman added.
Omar Ziv, head of Leumi's financial division, who led the fundraising abroad, noted that "after meetings with dozens of investors from the US, Europe and Asia, I was impressed by the great appreciation they have for Leumi in particular, and the Israeli economy in general. These replica demand came from leading institutional entities. Worldwide, after in-depth discussions of the Israeli economy, performance, strategy and competitive status of Leumi. The excellent results we have achieved, reflecting interest rates of the world's leading banks, are a huge success on any scale. "